As a small business owner, actually micro mini business owner, I discovered quite quickly that banks are not really that interested in you until you are making more deposits than withdrawals into your business account and then they want to be your best friend!
They usually want to see 2 years’ worth of positive cash flow business statements and enough paper to cut down a forest when it comes to applying for additional financing or better deals on interest rates. You could spend days coming up with the bits of paper they want to see, and then they will call you for some more papers!
I learned my lesson quickly and realized that you are basically on your own. So, unless you have a rich relative in your back pocket you will have to get creative when it comes to your business finances especially if you want to grow or purchase stock or supplies ahead of time.
If you want to purchase an expensive piece of equipment or a large lot of supplies or even a vehicle for deliveries or to get to a customers house, then you need access to credit.
I got this great deal in the mail one day and almost threw it out. But I looked carefully and it was 1% on credit card balance transfers. But it was ONLY for balances you transfer from another card not for cash advances. So, i decided to get creative and we really needed a business truck.
I purchased the used truck on my regular credit card (I was amazed that you could purchase vehicles with a credit card actually!) for 3000.00 dollars. I knew I would not be able to pay the entire amount by the due date, this was why I had put off purchasing one until now.
I waited about a week so I could see the purchase on my credit card account. I then phoned up the new card company, and since it had said I was already “pre-approved” I was not worried about a negative response.
I gave them the information and the balance was paid off before I even got to the due date, so there was no interest charges on the old card and now I had 18 months at this 1% rate. I did not use this new card for anything else.
I went back to my original card for any day to day purchases which I pay off every month. I then started making payments to the low interest credit card so that the balance would be paid off before the 18 months was up.
Don’t Use This Card For Any Other Purchases
Using a low interest credit card balance transfer only works in your favour if you do not use it for day to day purchases, otherwise any payments you make on this card will go directly to the lower interest one and NOT the purchases, so they will sit there at what ever the regular rate is which could be 17 to 28% until you pay off the cheap money and then payments will go to the purchases. This could cost you huge, so do not use the new card for anything other than larger purchases.
Keep this card simply for when you want to get cheap money to run your business. This is your new bank and your new best friend. Credit Cards should be safe guarded to, so get a great tip with this article credit card fraud and protect yourself.